Indo-Rama Synthetics bails out Tata power in Mumbai | business | Hindustan Times
Today in New Delhi, India
Dec 08, 2016-Thursday
-°C
New Delhi
  • Humidity
    -
  • Wind
    -

Indo-Rama Synthetics bails out Tata power in Mumbai

business Updated: Apr 20, 2007 21:53 IST
Highlight Story

Good news for the Mumbaites! The Indo-Rama Synthetics of Nagpur has agreed to supply 22-MW power to Tata Power Company for Mumbai that would minimise the financial capital of the country of its on-going power shortage!

According to available information, the power suppliers of the metro, Tata Power Co Limited is purchasing 22 MW power from the Nagpur-based company from its captive power plant. The Indo-Rama Synthetics generates 78-MW power from its own captive plant at Nagpur and of them, 22-MW is surplus. It is because of setting up of a new captive plant of 30-MW recently.

The officials of Tata Power Co are camping here for the last two-three days to sign a power purchase agreement (PPA) with the Indo-Rama in this regard. However, it was delayed for couple of days because of non-availability of no objection certificate (NOC) from the Maharashtra State Electricity Board.

If Tata purchases power from the company, the cost would be between Rs 6 and 7 per unit, a senior official of Indo-Rama pointed out.

Talking to Hindustan Times, CV Khandelwal, the president of Indo-Rama admitted that his company was selling its surplus power to Tata for supplying it to Mumbai. “The PPA will be signed in this regard within the next couple of days,” he further informed.

The financial capital of the country faces potential power cuts as demand peaks in April-May-June --- during the hottest months. The power crisis could be gauged from the fact that Tata Power Co urged office workers not to use electricity at peak times, switch the air conditioning later in the day and replace incandescent bulbs with compact fluorescent lamps.